A famous European aerospace giant Airbus has issued a press release. It reports that the company is withdrawing a proposal of dividend payment for 2019. Their total volume was to reach 1.4 billion euros. The management of the concern has withdrawn the forecast for 2020 too. The market uncertainty caused by the unpredictable course of the coronavirus pandemic was the main reason behind it.
This is a difficult time for the company; cash is being drawn thanks to a loan of 3 billion euros. These funds are clearly not enough to keep the concern afloat. So the board of directors of the European giant has decided to open another credit line in the amount of 15 billion euros.
Airbus reassured investors by saying that the company had developed a clear anti-crisis plan to help maintain liquidity even in protracted crisis.
However, today, this news has caused the fall of Airbus shares by 8.8%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group